Stanbic Bank Zambia purchased the 49% stake of Burnet Investments Limited held by Real Estate Investments Zambia (LuSE: REIZ) for a net consideration of US$2.84 million in cash. Burnet Investments owns 100% of ‘Stanbic House’ – a property currently occupied by Stanbic Bank under a triple net lease:
Burnet was a joint Venture formed with Standard Bank Properties (Pty) Ltd of South Africa for the development of the Stanbic Head Office which was completed in 2008. An independent valuation of the property performed in December 2014 valued it at $13.5 million. It had a net asset value of $5.8 million as of June 30 2015.
The sale represents a return-on-investment (ROI) of 131% for REIZ. The proceeds of the deal will be deployed pending finalization of investment property developments under consideration by the REIZ Board. The property accounted for 9.5% of group revenue and 3.8% of after-tax profit to REIZ in financial year 2014.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *